Describe the four phases of the business cycle.
What will be an ideal response?
The four phases of the business cycle are: (a) the peak phase at which business activity reaches a temporary maximum; (b) recession which is a period of decline in total output, income, employment, and trade lasting six months or longer; (c) the trough which is the bottom of the recession where output and employment reach their lowest level for the period; and, (d) the expansion phase is the expansionary phase as output and employment rise toward full employment.
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Why do you never see firms in a perfectly competitive market advertise their product?
What will be an ideal response?
The probability that an employed worker will lose his or her job in the next month is known as
A) the unemployment rate. B) the job finding rate. C) the underemployment rate. D) the job loss rate.
Which of the following are tools used by the Fed to implement monetary policy?
A. Printing Federal Reserve notes B. Open market operations C. Minting coins D. Regulating banks activities
When a baker exchanges a pie for dollars, this is an example of dollars serving as:
A. a unit of account. B. a store of value. C. barter. D. a medium of exchange.